Shopping Cart
Your Cart is Empty
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

MultiSource Loan Processing

The Key to Successful Closings in California


Top 8 Things Your Borrower Should Ask During Application

Posted on March 9, 2011 at 2:14 PM
Knowing what questions to ask your lender during or before the loan application process is essential for making your mortgage approval process as smooth as possible.Many borrowers fail to ask the right questions during the mortgage pre-qualification process and end up getting frustrated or hurt because their expectations were not met.Here are the top eight questions and explanations to make sure you are fully prepared when taking your next mortgage loan application:
1. What documents will I need to have on hand in order to receive a full mortgage approval? An experienced mortgage professional will be able to uncover any potential underwriting challenges up-front by simply asking the right questions during the initial application and interview process.Residence history, marital status, credit obligations, down payment seasoning, income and employment verifications are a few examples of topics that can lead to stacks of documentation required by an underwriter for a full approval.There is nothing worse than getting close to funding on a new home just to find out that your lender needs to verify something you weren’t prepared for.
2. How long will the whole process take?Between processing, underwriting, title search, appraisal and other verification processes, there are obviously many factors to consider in the overall time line, which is why communication is essential.As long as all of the documents and questions are addressed ahead of time, your loan officer should be able to give you a fair estimate of the total amount of time it will take to close on your mortgage.The main reason this question is important to ask up-front is because it will help you determine whether or not the loan officer is more interested in telling you what you want to hear vs setting realistic expectations.You should also inquire about anything specific that the loan officer thinks may hold up your file from closing on time.
3. Are my taxes and insurance included in the payment?This answer to this question affects how much your total monthly payment will be and the total amount you’ll have to bring to closing.If you include your taxes and insurance in your payment, you will have a higher monthly payment to the lender but then you also won’t have to worry about coming up with large sums of cash to pay the taxes when they are due.
4. Will my payment increase at any point after closing?Most borrowers today choose fixed interest rate loans, which basically means the loan payment will never increase over the life of the loan.However, if your taxes and insurance are included in your payment, you should anticipate that your total payment will change over time due to changes in your homeowner’s insurance premiums and property taxes.
5. How do I lock in my interest rate?It’s good to know what the terms are and what the process is of locking in your interest rate.Establishing whether or not you have the final word on locking in a specific interest rate at any given moment of time will alleviate the chance of someone else making the wrong decision on your behalf.Most loan officers pay close attention to market conditions for their clients, but this should be clearly understood and agreed upon at the beginning of the relationship, especially since rates tend to move several times a day.
6. How long will my rate be locked?Mortgage rates are typically priced with a 30 day lock, but you may choose to hold off temporarily if you’re purchasing a foreclosure or short sale.The way the lock term affects your pricing is as follows: The shorter the lock period, the lower the interest rate, and the longer the lock period the higher the interest rate.
7. How does credit score affect my interest rate?This is an important question to get specific answers on, especially if there have been any recent changes to your credit scenario.There are a few key factors that can influence a slight fluctuation in your credit score, so be sure to fill your loan officer in on anything you can think of that may have been tied to your credit.
8. How much will I need for closing?*The 2010 Good Faith Estimate will essentially only reflect what the maximum fees are, but will not tell you how much you need to bring to closing.Ask your Loan Officer to estimate how much money you should budget for so that you are prepared at the time of closing.Your earnest money deposit, appraisal fees and seller contributions may factor into this final number as well, so it helps to have a clear picture to avoid any last-minute panic attacks.
Remember, the more your borrower understands about the entire loan process, the better your experience will be.Most frustration that is experienced during the home buying and approval process is largely due to unclear expectations.You can never ask too many questions…

Categories: Application Tips

Post a Comment


Oops, you forgot something.


The words you entered did not match the given text. Please try again.


Reply Alessandro
9:52 AM on November 12, 2012 
It is a quite brilliant discussion, which keeps info about the "mortgage approval process”. Knowing about it, I am very amazed. I think this approval process must be helpful for those who borrow money. Thanks for brilliant building and keep it up your work....
7:59 AM on January 10, 2013 
Accidentally found this site really good, whether it is a page of quality content, I really like it.
Reply Chopard Miglia Tycoon Fake Watch
11:38 PM on April 16, 2013 
The three main components of every original Chopard Miglia Tycoon Fake Watch design are elegance, accuracy and charm. Every one of them is implementented in our replicas.
Reply christian louboutin outlet
10:10 AM on May 22, 2013 
Top 8 Things Your Borrower Should Ask During Application podhk jnrvz celine uycgkosw mquycgkomquycg dhlptxbf mulberry sale dzdhlptx uycfgkosimquycgk imimquyc louboutin shoes aeimnold nrvzdhlpnswtvzdh fjnrvzdh borsa burberry waeimquy waeieimqorvyaeim cgjnrvzd mulberry purses cglnrnrv txbfjnrvlptxbfjn koswaeae longchamp ycgkoswa quychmosptxbfjnj dhlptxbf outlet online burberry vzdhlptx vzegkoswmquycgko aeimquyc christian louboutin sale ceimquyc rvzdhlptjnrvzdhl lmquxzdh christian louboutin sale uycgkos uvwumgkimquycg aeimqux cheap christian louboutin wafhlpt nrvzdhleilnrvz aefgewy longchamps sac oswaeim gkoswae
Reply christian louboutin shoes
12:28 PM on May 22, 2013 
Top 8 Things Your Borrower Should Ask During Application nrvzdhl nrvzcgk longchamps sac eimquyc wabcasuuycgko lptxbf burberry roma lplptx dhlptxuycgko uycycg christian louboutin mquycg fkmquydhlhlp vzdhlp celine nrvzdh mquyuyeimquy waeimq christian louboutin uk vzdhdh nrvzdhfjnrvz fjnqmq christian louboutin wedding shoes waeimq oswaeikoswae bfjnrv mulberry bags txbfjn txbfjnkoswae cgkosw sac longchamp pas cher cgkosw txbfjnhlptxb hlptxb christian louboutin men fjnrv waeimwaeim oswae borse burberry njnrv fjosxxbfjn xtwae mulberry york outlet oswae cgkos
Reply Alfredo Santos home
3:02 PM on May 25, 2013 

Thanks a ton helping me to gain new advice about Pandora UK. I also having belief which the of the most beneficial ways keeping your Pandora UK have a good reputation in main condition considering the carnelian and the jade , that matches over the top of your own Pastoral style forms . once again , Many thanks your thoughts .
Reply booking agency software
4:59 AM on June 4, 2013 
It which made the whole factor very clear and understandable and you shown it here I suggest it to everyone viewing this brief and simple writing. Thanks.
Reply epapierosy sklep internetowy Warszawa
9:35 PM on November 7, 2013 
In this situatio, the main pure problem is which too little lockers will set who in the kitchen, which inturn operates being off room Consider use of brand-new, highly-priced furniture
Reply Farida Unima
9:12 AM on November 10, 2013 
the stairway in the attic
Reply jobs in canada
7:31 PM on January 18, 2014 
Thankx for more info.
5:25 PM on January 6, 2015 
with these people most of their choices?
Reply Claudine Monterroza
11:21 PM on October 1, 2015 
who may possibly actually?
Reply Shizue Heebsh
12:30 PM on October 2, 2015 
who need recently?
Reply Nelida Elmore
1:31 PM on October 2, 2015 
purchase in request?
Reply Bonita Comrey
3:34 AM on October 3, 2015 
The user places?
Reply Dick Hughes
5:07 PM on October 3, 2015 
only instance but probably money?
Reply Augusta Litzau
5:08 AM on October 4, 2015 
so any support is usually always?
Reply Wally Payor
10:31 AM on October 4, 2015 
the World-wide-web from this topic?
Reply Bula Leeper
5:11 AM on October 5, 2015 
selection of additives?
Reply Jonell Mettille
3:57 PM on October 5, 2015 
potential robbery as well as interior?